Fidelity Places Limits on Purchases of Muni Money Market Funds
Because no one is currently buying municipal bonds insured by the monoline insurance carriers, there are not enough non-insured municipal bonds to invest in (see attached file). Download 080214_fidelity_muni_restrictions.pdf
Also, TD Ameritrade has had to invest its municipal money market funds in taxable bonds for the same reason.
I'm pretty sure this is unprecedented.
